Pay-TV main source of revenue for Italian TV sector

Italian pay-TV has grown by 2.7 per cent in 2017, become the main source of revenue (40 per cent of the total) for the country’s TV sector, surpassing advertising.

This is the main conclusion of a report from Rome-based consultancy ITMedia Consulting called the “Television Market in Italy 2017-2019”.

The report indicates that the TV market in 2017 was worth €8.1 billion (-1.1 per cent y/y), if TV licence fees are included (-10 per cent). However, if only advertising (+0.7 per cent y/y) and pay-TV are considered, there was an average growth of 1.6 per cent.

Significantly, in the next 2 years, broadband TV will in 2019 become the primary TV distribution platform in 3.5 million homes, exceeding subscription-based DTT services (Mediaset Premium).

The consultancy believes that the Italian TV sector will be worth €8.4 billion in 2019, as a result of an average annual growth rate of 3 per cent.

Pay-TV, despite the decline in the DTT segment, will see a higher growth rate than other resources and, thanks to Broadband TV, which will drive market, will strengthen its leadership position.

Sky Italia, Mediaset and Rai will continue to divide 90 per cent of the total market in 2019 despite losing two percentage points, as a result of the growth of “thematic” free-to-air operators in DTT and Broadband TV. Sky Italia confirms its position as the main market player, increasing the gap from Mediaset and Rai. The other operators will see growth that exceeds 10 per cent.

Also, multi-platform and multi-screen personalised offers, thematic channels, non-linear and VoD will become an increasingly significant component of TV consumption.

Only operators who will be able to take full advantage of the technological challenges of the coming years, according to ITMedia Consulting, will be able to aspire to play a central role in this new scenario.